State teachers union blasts pension change panel
Chairman: Goal is 'fiscally sound and sustainable' system
The executive director of the state teachers union criticized Thursday the panel considering changes to the Maryland public employees' pension system, saying the process is "offensive" and "rushed."
David E. Helfman, executive director the Maryland State Education Association, said the panel is driven by a desire to quickly cut $400 million to $500 million from the plan rather than by "solid thinking" about the best ways to cure the system.
Helfman's members have much at stake: The influential Public Employees' and Retirees' Benefit Sustainability Commission is considering reducing benefits, increasing employee contributions or scrapping the system and moving to a 401(k)-type plan. Teachers make up about 60 percent of the state's retiree pool.
Casper R. Taylor Jr., a former speaker of the House of Delegates who chairs the eight-member commission, denied that the panel is on a short-term cost-cutting mission.
"I have never heard anybody use the word 'target' or speak to me about targets," he said. Rather, the commission's goal is to create a retirement system that is "fiscally sound and sustainable."
The commission is required by law to issue a report by Dec. 15. Taylor said he is confident the group will meet the deadline.
Maryland's pension system has 65 percent of the funds needed to pay the $33 billion it owes to retirees — and costs are